, affects inward FDI and domestic welfare. Whether good governance in the domestic country attracts FDI depends on the way it … affects the marketing and distribution costs. The effect of good governance is ambiguous on domestic welfare and depends on …

, We show that, in presence of licensing, the incentive for innovation may also be stronger under decentralized unions …

Southern innovation is sufficiently low such that the Southern firm innovates irrespective of the Southern patent regime and … the production strategy of the Northern firm, or the Southern firm’s cost of innovation is moderate such that it innovates … for FDI. For all other costs of Southern innovation, a stronger Southern patent regime increases the Northern firm …

We show that international outsourcing may reduce welfare of the outsourcing country by deterring market-entry, thus …. Entry deterrence under outsourcing reduces domestic welfare if both the profit extraction and cost saving from outsourcing …

differ in technologies. Whether lower trade cost increases welfare is ambiguous, and depends on its effects on FDI. We also … show the impacts of technology licensing on FDI and welfare. Licensing substitutes FDI, and the effects of lower trade cost … are ambiguous on the home country welfare and the host country welfare in presence of licensing. Whether, for a given …

worse off by reducing product-market competition unless it increases innovation significantly. We show that the absence of …-market concentration compared to the situation with patent protection. Hence, even if we ignore the innovation inducing role of patent …

incentive for innovation may also be stronger under decentralized unions. Unions have a clear preference for centralization only …